Financial Services Commission: "Domestic Financial Market Stable... Vigilance Maintained Due to Persistent Risks"

Son Byung-du, Vice Chairman of the Financial Services Commission, is speaking at the 6th Financial Risk Response Team meeting of the Economic Central Disaster and Safety Countermeasures Headquarters held at the Korea Federation of Banks in Jung-gu, Seoul on the 2nd. / Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Kim Hyo-jin] Sohn Byung-doo, Vice Chairman of the Financial Services Commission, evaluated on the 2nd that "the domestic financial market is showing a stable appearance thanks to the government's efforts to stabilize the market."

Vice Chairman Sohn made these remarks while presiding over the 'Financial Risk Response Team Meeting' at the Korea Federation of Banks in Jung-gu, Seoul, on the morning of the same day.

However, Sohn pointed out that "amid the ongoing situation where the novel coronavirus infection (COVID-19) has not been completely eradicated, multiple risk factors that could affect the financial market, such as concerns over a global economic slowdown, the US-China conflict surrounding Hong Kong, and instability in emerging markets, are still ongoing."

He emphasized, "In this economic wartime situation, the attitude of the 'Stockdale paradox' is necessary." This refers to rational optimism that acknowledges a pessimistic reality while believing that good results can be achieved in the future.

Vice Chairman Sohn said, "We will maintain vigilance regarding risk factors in the financial sector through continuous and meticulous monitoring of the financial market and respond to the market in a timely manner."

He also stated, "Through the rapid underwriting system for corporate bonds and the issuance of P-CBOs, we will provide swift support to companies affected by COVID-19 and help companies avoid losing competitiveness due to temporary liquidity shortages," adding, "We will promptly implement follow-up measures to establish the Industrial Stability Fund and the purchase institution for corporate bonds and CPs, including low credit ratings."

He further evaluated, "Regarding the second support program for small business owners, funds are being smoothly disbursed," and added, "By utilizing a non-face-to-face screening system, we were able to minimize window congestion and loan bottlenecks."

According to the Financial Services Commission, among the total 32,000 applications for the second small business loan submitted from the 18th to the 28th of last month, about 11,000 were received through non-face-to-face channels.

Meanwhile, from February 7th to the 29th of last month, a total of 1,429,000 cases and 117.3 trillion won were supported to small and medium enterprises and small business owners through the government's 'Livelihood and Financial Stability Package Program' across the entire financial sector.

This content was produced with the assistance of AI translation services.